Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001593548 | |
Entity Registrant Name | PLAYAGS, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38357 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 46-3698600 | |
Entity Address, Address Line One | 6775 S. Edmond St., Ste #300 | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89118 | |
City Area Code | 702 | |
Local Phone Number | 722-6700 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | AGS | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 37,170,797 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 38,854 | $ 94,977 |
Restricted cash | 20 | 20 |
Accounts receivable, net of allowance of $2,193 and $1,993, respectively | 52,931 | 49,426 |
Inventories | 37,550 | 27,534 |
Prepaid expenses | 7,250 | 4,878 |
Deposits and other | 8,218 | 8,240 |
Total current assets | 144,823 | 185,075 |
Property and equipment, net | 75,426 | 74,916 |
Goodwill | 287,069 | 285,546 |
Intangible assets | 151,421 | 160,044 |
Deferred tax asset | 7,499 | 7,333 |
Operating lease assets | 12,257 | 12,503 |
Other assets | 7,413 | 7,394 |
Total assets | 685,908 | 732,811 |
Current liabilities | ||
Accounts payable | 18,828 | 9,439 |
Accrued liabilities | 39,210 | 39,165 |
Current maturities of long-term debt | 6,146 | 6,877 |
Total current liabilities | 64,184 | 55,481 |
Long-term debt | 551,825 | 599,281 |
Deferred tax liability, non-current | 2,795 | 2,653 |
Operating lease liabilities, long-term | 11,556 | 11,871 |
Other long-term liabilities | 18,970 | 21,954 |
Total liabilities | 649,330 | 691,240 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity | ||
Preferred stock at $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock at $0.01 par value; 450,000,000 shares authorized at June 30, 2022 and at December 31, 2021; and 37,121,715 and 36,943,770 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 371 | 369 |
Additional paid-in capital | 397,785 | 392,161 |
Accumulated deficit | (355,951) | (344,889) |
Accumulated other comprehensive loss | (5,627) | (6,070) |
Total stockholders’ equity | 36,578 | 41,571 |
Total liabilities and stockholders’ equity | $ 685,908 | $ 732,811 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance | $ 2,193 | $ 1,993 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 37,121,715 | 36,943,770 |
Common stock, shares outstanding (in shares) | 37,121,715 | 36,943,770 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenues | |||||
Total revenues | $ 76,584 | $ 66,837 | $ 149,441 | $ 122,196 | |
Operating expenses | |||||
Selling, general and administrative | 15,975 | 16,300 | 33,926 | 28,908 | |
Research and development | 10,040 | 9,009 | 20,250 | 17,069 | |
Write-downs and other charges | 342 | 64 | 435 | 788 | |
Depreciation and amortization | 19,160 | 18,611 | 38,029 | 37,019 | |
Total operating expenses | 66,771 | 59,409 | 133,950 | 111,353 | |
Income from operations | 9,813 | 7,428 | 15,491 | 10,843 | |
Other expense (income) | |||||
Interest expense | 8,087 | 11,517 | 17,560 | 22,498 | |
Interest income | (214) | (276) | (423) | (564) | |
Loss on extinguishment and modification of debt | 0 | 0 | 8,549 | 0 | |
Other expense (income) | 277 | (181) | 269 | (34) | |
Income (loss) before income taxes | 1,663 | (3,632) | (10,464) | (11,057) | |
Income tax expense | (121) | (251) | (588) | (596) | |
Net income (loss) | 1,542 | (3,883) | (11,052) | (11,653) | |
Foreign currency translation adjustment | (561) | 886 | 443 | 24 | |
Total comprehensive income (loss) | $ 981 | $ (2,997) | $ (10,609) | $ (11,629) | |
Basic and diluted income (loss) per common share: | |||||
Basic (in dollars per share) | $ 0.04 | $ (0.11) | $ (0.30) | $ (0.32) | |
Diluted (in dollars per share) | $ 0.04 | $ (0.11) | $ (0.30) | $ (0.32) | |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 36,998 | 36,632 | 37,051 | 36,549 | |
Diluted (in shares) | 36,998 | 36,632 | 37,051 | 36,549 | |
Gaming Operations [Member] | |||||
Revenues | |||||
Total revenues | $ 56,640 | $ 55,039 | $ 109,804 | $ 99,455 | |
Operating expenses | |||||
Cost of goods and services | [1] | 10,868 | 9,677 | 21,137 | 18,353 |
Equipment Sales [Member] | |||||
Revenues | |||||
Total revenues | 19,944 | 11,798 | 39,637 | 22,741 | |
Operating expenses | |||||
Cost of goods and services | $ 10,386 | $ 5,748 | $ 20,173 | $ 9,216 | |
[1]exclusive of depreciation and amortization |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance, beginning of period at Dec. 31, 2020 | $ 364 | $ 379,917 | $ (321,412) | $ (5,086) | |
Vesting of restricted stock | 3 | (3) | |||
Stock-based compensation expense | 4,862 | ||||
Net income (loss) | (11,653) | ||||
Restricted stock vesting and withholding | (788) | ||||
Foreign currency translation adjustment | 24 | $ 24 | |||
Balance at Jun. 30, 2021 | 367 | 384,776 | (333,853) | (5,062) | 46,228 |
Balance, beginning of period at Mar. 31, 2021 | 366 | 381,547 | (329,960) | (5,948) | |
Vesting of restricted stock | 1 | (1) | |||
Stock-based compensation expense | 3,230 | ||||
Net income (loss) | (3,883) | ||||
Restricted stock vesting and withholding | (10) | ||||
Foreign currency translation adjustment | 886 | 886 | |||
Balance at Jun. 30, 2021 | 367 | 384,776 | (333,853) | (5,062) | 46,228 |
Balance, beginning of period at Dec. 31, 2021 | 369 | 392,161 | (344,889) | (6,070) | 41,571 |
Vesting of restricted stock | 2 | (2) | |||
Stock-based compensation expense | 5,626 | ||||
Net income (loss) | (11,052) | ||||
Restricted stock vesting and withholding | (10) | ||||
Foreign currency translation adjustment | 443 | 443 | |||
Balance at Jun. 30, 2022 | 371 | 397,785 | (355,951) | (5,627) | 36,578 |
Balance, beginning of period at Mar. 31, 2022 | 371 | 395,837 | (357,493) | (5,066) | |
Vesting of restricted stock | 0 | 0 | |||
Stock-based compensation expense | 1,948 | ||||
Net income (loss) | 1,542 | 1,542 | |||
Restricted stock vesting and withholding | 0 | ||||
Foreign currency translation adjustment | (561) | (561) | |||
Balance at Jun. 30, 2022 | $ 371 | $ 397,785 | $ (355,951) | $ (5,627) | $ 36,578 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (11,052) | $ (11,653) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 38,029 | 37,019 |
Accretion of contract rights under development agreements and placement fees | 3,198 | 3,316 |
Amortization of deferred loan costs and discount | 1,537 | 2,680 |
Write-off of deferred loan costs and discount | 1,586 | 0 |
Cash paid for debt prepayment penalties to prior debt holders | 848 | 0 |
Stock-based compensation expense | 8,231 | 4,862 |
Provision for bad debts | 273 | 205 |
Loss on disposition of long-lived assets | 416 | 191 |
Impairment of assets | 19 | 653 |
Fair value adjustment of contingent consideration | 0 | (56) |
Provision for deferred income tax (benefit) | 89 | 49 |
Changes in assets and liabilities that relate to operations: | ||
Accounts receivable | (3,500) | (3,844) |
Inventories | (9,143) | 2,367 |
Prepaid expenses | (2,776) | (4,270) |
Deposits and other | 106 | (1,920) |
Other assets, non-current | 1,787 | 1,706 |
Accounts payable and accrued liabilities | 5,256 | 4,588 |
Net cash provided by operating activities | 34,904 | 35,893 |
Cash flows from investing activities | ||
Business acquisitions, net of cash acquired | (4,750) | 0 |
Proceeds from payments on customer notes receivable | 137 | 0 |
Software development and other expenditures | (9,852) | (7,210) |
Proceeds from disposition of assets | 8 | 22 |
Purchases of property and equipment | (20,401) | (14,191) |
Net cash used in investing activities | (34,858) | (21,379) |
Cash flows from financing activities | ||
Repayment of prior first lien credit facilities | (521,215) | (2,694) |
Payment of financed placement fee obligations | (2,593) | (2,444) |
Proceeds from term loans | 569,250 | 0 |
Payment of deferred loan costs | (4,838) | 0 |
Payment of debt prepayment penalties to prior debt holders | (848) | 0 |
Payments of previous acquisition obligation | (287) | (257) |
Payments on finance leases and other obligations | (616) | (867) |
Repurchase of stock | (10) | (788) |
Net cash used in financing activities | (56,170) | (7,525) |
Effect of exchange rates on cash and cash equivalents | 1 | 10 |
Net increase in cash, cash equivalents and restricted cash | (56,123) | 6,999 |
Cash, cash equivalents and restricted cash, beginning of period | 94,997 | 81,709 |
Cash, cash equivalents and restricted cash, end of period | 38,874 | 88,708 |
Non-cash investing and financing activities: | ||
Leased assets obtained in exchange for new operating lease liabilities | 956 | 3,042 |
Leased assets obtained in exchange for new finance lease liabilities | 242 | 318 |
First Lien Credit Facilities [Member] | ||
Cash flows from financing activities | ||
Repayment of prior first lien credit facilities | (1,438) | 0 |
Incremental Term Loans [Member] | ||
Cash flows from financing activities | ||
Repayment of prior first lien credit facilities | $ (93,575) | $ (475) |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1. Description of Business PlayAGS, Inc. (the "Company," "PlayAGS," "we," "us," or "our") is a leading designer and supplier of gaming products and services for the gaming industry. We operate in legalized gaming markets across the globe and provide state-of-the-art, value-add products in three Electronic Gaming Machines Our EGM segment offers a library of proprietary video slot titles developed for the global marketplace, and EGM cabinets which include our premium lease-only cabinets of Orion Starwall Orion Curve Premium Big Red Orion Portrait Orion Slant Orion Curve Orion Upright ICON Table Products Our Table Products include both internally developed and acquired proprietary table products, side-bets, progressives, and table technology related to blackjack, poker, baccarat, craps and roulette. We have acquired a number of popular proprietary brands, including In Bet Gaming (“In Bet”), Buster Blackjack, Double Draw Poker Criss Cross Poker Dex S, second Pax S Interactive We operate a Business-to-Business ( "B2B" 1,000 third AGS also offers Business-to-Consumer ( “B2C” B2C may may 600 Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures required by generally accepted accounting principles (“GAAP”) are omitted or condensed in these condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) that are necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not 10 December 31, 2021 Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606 Revenue from contracts with customers 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 EGM Gaming operations $ 50,538 $ 49,432 $ 97,834 $ 89,036 Equipment sales 19,929 11,761 39,539 22,675 Total $ 70,467 $ 61,193 $ 137,373 $ 111,711 Table Products Gaming operations $ 3,499 $ 2,793 $ 6,896 $ 5,520 Equipment sales 15 37 98 66 Total $ 3,514 $ 2,830 $ 6,994 $ 5,586 Interactive (gaming operations) Social gaming revenue $ 515 $ 580 $ 1,030 $ 1,289 Real-money gaming revenue 2,088 2,234 4,044 3,610 Total $ 2,603 $ 2,814 $ 5,074 $ 4,899 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to any undelivered performance obligations is recorded as a contract liability. The balance of our contract liabilities was not June 30, 2022 December 31, 2021 Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. A large percentage of receivables are with Native American tribes and the Company has concentrations of credit risk with several tribes. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. Allowance for Expected Credit Losses Management estimates the allowance for expected credit losses balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in the current environmental economic conditions and reasonable and supportable forecast. The allowance for expected credit losses on financial instruments is measured on a collective (pool) basis when similar risk characteristics exist. The financial instruments that do not not For the period ended June 30, 2022 no Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 no June 30, 2022 December 31, 2021 Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 1 to 5 Other property and equipment (in years) 3 to 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The computer software we develop reaches technological feasibility when a working model of the computer software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed computer software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar issues (Level 2 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 574,298 $ 542,752 $ 615,743 $ 613,706 Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of other accumulated comprehensive income (loss) in stockholders’ equity. Recently Issued Accounting Pronouncements In March 2022, No. 2022 02, Financial Instruments - Credit Losses (Topic 326 No. 2022 02 310 40 No. 2022 02 December 15, 2022, not We have not not |
Note 2 - Property and Equipment
Note 2 - Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 2. Property and equipment consist of the following (in thousands): June 30, 2022 December 31, 2021 Gaming equipment $ 212,243 $ 196,748 Other property and equipment 22,429 23,973 Less: Accumulated depreciation (159,246 ) (145,805 ) Property and equipment, net $ 75,426 $ 74,916 Gaming equipment and other property and equipment are depreciated over the respective useful lives of the assets ranging from one six three June 30, 2022 2021 six June 30, 2022 2021 |
Note 3 - Goodwill and Intangibl
Note 3 - Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 3. Changes in the carrying amount of goodwill are as follows (in thousands): Gross Carrying Amount EGM Table Products Interactive(1) Total December 31, 2021 $ 277,725 $ 7,821 $ - $ 285,546 Foreign currency adjustments 293 - - 293 Acquisition - 1,230 - 1,230 Balance at June 30, 2022 $ 278,018 $ 9,051 $ - $ 287,069 ( 1 June 30, 2022 Intangible assets consist of the following (in thousands): June 30, 2022 December 31, 2021 Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying (years) Value Amortization Value Value Amortization Value Indefinite lived trade names Indefinite $ 12,126 $ - $ 12,126 $ 12,126 $ - $ 12,126 Trade and brand names 5 - 7 14,990 (14,616 ) 374 14,870 (14,495 ) 375 Customer relationships 5 - 12 219,147 (161,415 ) 57,732 218,247 (155,140 ) 63,107 Contract rights under development and placement fees 1 - 7 42,395 (20,697 ) 21,698 42,535 (17,639 ) 24,896 Gaming software and technology platforms 1 - 7 187,402 (137,388 ) 50,014 177,686 (126,182 ) 51,504 Intellectual property 10 - 12 21,845 (12,368 ) 9,477 19,345 (11,309 ) 8,036 Total intangible assets $ 497,905 $ (346,484 ) $ 151,421 $ 484,809 $ (324,765 ) $ 160,044 Intangible assets are amortized over their respective estimated useful lives ranging from one twelve three June 30, 2022 2021 six June 30, 2022 2021 PLAYAGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not six June 30, 2022 six June 30, 2021 no The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not not three June 30, 2022 2021 six June 30, 2022 2021 |
Note 4 - Accrued Liabilities
Note 4 - Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. Accrued liabilities consist of the following (in thousands): June 30, 2022 December 31, 2021 Salary and payroll tax accrual $ 14,619 $ 16,994 Taxes payable 4,420 4,016 Current portion of operating lease liability 2,222 2,137 License fee obligation 1,000 1,000 Placement fees payable 6,314 6,314 Accrued other 10,635 8,704 Total accrued liabilities $ 39,210 $ 39,165 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 5. Long-term debt consists of the following (in thousands): June 30, 2022 December 31, 2021 First Lien Credit Facilities: Term loans, interest at SOFR, subject to a 0.75 4.0 6.2 16.3 $ 557,236 $ - Term loans, interest at LIBOR or base rate plus 3.5 4.5 4.0 - 517,247 Incremental term loans, interest at LIBOR or base rate plus 13.0 14.0 5.6 - 87,958 Finance leases 735 953 Total debt 557,971 606,158 Less: Current portion (6,146 ) (6,877 ) Long-term debt $ 551,825 $ 599,281 First Lien Credit Facilities On February 15, 2022, The Borrower is a direct subsidiary of AP Gaming Holdings, LLC, which is a direct subsidiary of AP Gaming, Inc., which is a direct subsidiary of PlayAGS, Inc. These entities between the Borrower and PlayAGS, Inc. are holding companies with no first first 0.75% one February 15, 2029 June 30, 2022, February 15, 2027. may August 15, 2022 June 30, 2022, first 1.00 An additional $17.6 million in loan costs including original issue discount, lender fees, third As of June 30, 2022 no Finance Leases The Company has entered into leases for vehicles and equipment that are accounted for as finance leases. PLAYAGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 6. Our amended and restated articles of incorporation provide that our authorized capital stock will consist of 450,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2022 Common Stock Voting Rights The holders of our common stock are entitled to one not Dividend and Distribution Rights All shares of our common stock are entitled to share equally in any dividends and distributions our board of directors may Share repurchase program 2019, August 11, 2023. June 30, 2022 $50.0 |
Note 7 - Write-downs and Other
Note 7 - Write-downs and Other Charges | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 7. The Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) include various transactions, such as loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration that have been classified as write-downs and other charges. During the three June 30, 2022 , the Company recognized $0.3 million in write-downs and other charges primarily related to the disposal of long-lived assets. During the three June 30, 2021 , the Company primarily related to the disposal of long-lived assets. During the six June 30, 2022 , the Company recognized $0.4 million in write-downs and other charges primarily related to the disposal of long-lived assets. During the six June 30, 2021 , the Company primarily related to 3 |
Note 8 - Basic and Diluted Inco
Note 8 - Basic and Diluted Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 8. The Company computes net income (loss) per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). Basic EPS is computed by dividing net income (loss) for the period by the weighted average number of shares outstanding during the period. Basic EPS includes common stock weighted for average number of shares issued during the period. Diluted EPS is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. Potentially dilutive common shares include stock options and restricted stock (see Note 10. Three Months Ended June 30, 2022 Numerator: Net income $ 1,542 Net income attributable to participating securities $ 89 Net income attributable to common stock $ 1,453 Denominator: Weighted average of common shares outstanding $ 36,998 Potential dilutive effect of stock options $ - Weighted average of common shares outstanding $ 36,998 There were 2,259,427 participating securities included in the calculation of EPS for the three June 30, 2022. six June 30, 2022 three six June 30, 2021 Excluded from the calculation of diluted EPS for the three June 30, 2022 not six June 30, 2022 Excluded from the calculation of diluted EPS for the three June 30, 2021 six June 30, 2021 |
Note 9 - Benefit Plans
Note 9 - Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 9. The Company has established a 401 “401 401 may 401 three June 30, 2022 2021 401 six June 30, 2022 2021 On April 28, 2014, 2014 ten may June 30, 2022 not On January 16, 2018, 2018 may May 8, 2020, 2018 “2020 July 1, 2020 2020 On April 28, 2022, 2018 2020 2022 2022 July 1, 2022, 2022 2022 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 10. The Company has granted equity or equity-based awards to eligible participants under its incentive plans. The awards include options to purchase the Company’s common stock, restricted stock or restricted stock units and phantom stock units. These awards include a combination of service and market conditions, as further described below. We recognize stock-based compensation on a straight-line basis over the vesting period for time based awards and we recognize the expense for awards with market conditions over the service period derived from the related valuation. As of June 30, 2022 Stock Options The Company calculates the grant date fair value of stock options that vest over a service period using the Black Scholes model. For stock options and other stock awards that contain a market condition related to the return on investment that the Company’s stockholders achieve or obtaining a certain stock price, the awards are valued using a lattice-based valuation model. The assumptions used in these calculations are the expected dividend yield, expected volatility, risk-free interest rate and expected term (in years). Expected volatilities are based on implied volatilities from comparable companies. The risk-free rate is based on the U.S. Treasury yield curve for a term equivalent to the estimated time to liquidity. There were no options granted during the three six June 30, 2022 Stock option awards represent options to purchase common stock and are granted pursuant to the Company’s incentive plans, and include options that the Company primarily classifies as Tranche A or time based, Tranche B and Tranche C. Tranche A or time based options are eligible to vest in equal installments of 20% or 25% on each of the first five four not All other option awards are eligible to vest upon the satisfaction of certain performance conditions (collectively, “Performance Options”). These performance conditions included the achievement of investor returns or common stock trading prices. These performance conditions were achieved in October 2018 A summary of the changes in stock options outstanding during the six June 30, 2022 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2021 1,244,073 $ 9.14 3.4 $ 193 Granted - $ - - $ - Exercised - $ - - $ - Canceled or forfeited (81,985 ) $ 10.51 - $ - Options outstanding as of June 30, 2022 1,162,088 $ 9.05 2.9 $ - Options exercisable as of June 30, 2022 1,162,088 $ 9.05 2.9 $ - Restricted Stock and Restricted Stock Units Restricted stock awards and restricted stock units are typically eligible to vest in equal installments of 25% on each of the first four 12 Certain restricted stock units are eligible to vest upon the satisfaction of certain performance conditions. Vesting occurs on the first 60 not four A summary of the changes in restricted stock and restricted stock units outstanding during the six June 30, 2022 Shares Outstanding Weighted Average Grant Date Fair Value (per share) Restricted Stock and Restricted Stock Units Outstanding as of December 31, 2021 1,934,876 $ 8.25 Granted 107,301 $ 7.48 Vested (179,296 ) $ 12.81 Canceled or forfeited (35,641 ) $ 8.99 Restricted Stock and Restricted Stock Units Outstanding as of June 30, 2022 1,827,240 $ 7.74 Phantom Stock Units Phantom stock awards are typically eligible to vest in equal installments of 25% on each of the first four 12 Certain phantom stock units are eligible to vest upon the satisfaction of certain performance conditions. Vesting occurs on the first 60 fourth first first A summary of the changes in phantom stock outstanding during the six June 30, 2022 Shares Outstanding Weighted Average Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2021 2,253,400 $ 6.47 Granted 2,669 $ 7.87 Vested - $ - Canceled or forfeited (49,208 ) $ 6.19 Phantom stock outstanding as of June 30, 2022 2,206,861 $ 6.48 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 11. The Company's effective income tax rate for the three June 30, 2022 three June 30, 2022 three June 30, 2021 three June 30, 2021 The Company's effective income tax rate for the six June 30, 2022 three June 30, 2022 six June 30, 2021 three June 30, 2021 The Company entered into an indemnification agreement with the prior owners of Cadillac Jack (acquired in May 2015 As of June 30, 2022 no no three six June 30, 2022 three six June 30, 2021 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12. The Company is subject to federal, state and Native American laws and regulations that affect both its general commercial relationships with its customers, as well as the products and services provided to them. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. If a potential loss from any claim or legal proceeding is considered reasonably possible, the Company discloses an estimate of the possible loss or range of possible loss, or a statement that such an estimate cannot be made. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to their pending claims and litigation and may During the three September 30, 2019, On June 25, July 31, 2020 two August 2, 2018 August 7, 2019. 10 20 1934 2019 August 7, 2019. On August 4, 2020, third first two May 3, 2018). 50% 10 20 2019 11, 12 2 15 1933, August 2018 March 2019 On October 28, 2020, three In re PlayAGS, Inc. Securities Litigation January 11, 2021, 10 20 May 3, 2018 March 4, 2020), 11, 12 2 15 August 7, 2019, November 7, 2019, March 4, 2020. not On February 23, 2021 March 25, 2021 January 26, 2018. second May 24, 2021; July 23, 2021, September 13, 2021. no no On March 18, 2022, 10 21D no In January 2021, May 2016 August 2019. not June 30, 2022 not not PLAYAGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) |
Note 13 - Operating Segments
Note 13 - Operating Segments | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 13. We report our business segment results by segment in accordance with the “management approach.” The management approach designates the internal reporting used by our chief operating decision maker (“CODM”), who is our Chief Executive Officer (the “CEO”), for making decisions and assessing performance of our reportable segments. See Note 1. three Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment Adjusted EBITDA includes the revenues and operating expenses from each segment adjusted for: • Write-downs and other include items related to loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration; • Depreciation, amortization; • Loss on extinguishment and modification of debt primarily relates to the refinancing of long-term debt, in which deferred loan costs and discounts related to old senior secured credit facilities were written-off; • Other adjustments are primarily composed of the following: • Costs and inventory and receivable valuation charges associated with the COVID- 19 • Acquisition and integration-related costs related to the purchase of businesses and to integrate operations and obtain costs synergies; • Restructuring and severance costs, which primarily relate to costs incurred through the restructuring of the Company’s operations from time to time and other employee severance costs recognized in the periods presented; • Legal and litigation related costs, which consist of payments to law firms and settlements for matters that are outside the normal course of business; • Other non-cash charges are costs related to non-cash charges and losses on the disposition of assets, non-cash charges on capitalized installation and delivery, which primarily includes the costs to acquire contracts that are expensed over the estimated life of each contract and non-cash charges related to accretion of contract rights under development agreements; and • Non-cash stock-based compensation includes non-cash compensation expense related to grants of options, restricted stock, and other equity awards. Revenues in each segment are attributable to third Segment Adjusted EBITDA excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments. The following provides financial information concerning our reportable segments for the three six June 30, 2022 2021 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues by segment EGM $ 70,467 $ 61,193 $ 137,373 $ 111,711 Table Products 3,514 2,830 6,994 5,586 Interactive 2,603 2,814 5,074 4,899 Total Revenues 76,584 66,837 149,441 122,196 Adjusted EBITDA by segment EGM 31,564 29,453 61,759 53,856 Table Products 2,021 1,448 3,850 2,859 Interactive 545 1,202 1,287 1,710 Subtotal 34,130 32,103 66,896 58,425 Write-downs and other: Loss on disposal of long-lived assets 323 120 416 191 Impairment of long-lived assets 19 - 19 653 Fair value adjustments to contingent consideration - (56 ) - (56 ) Depreciation and amortization 19,160 18,611 38,029 37,019 Interest expense, net of interest income and other 8,150 11,060 17,406 21,900 Loss on extinguishment and modification of debt - - 8,549 - Other adjustments 301 717 412 679 Other non-cash charges 2,108 2,053 4,298 4,234 Non-cash stock-based compensation 2,406 3,230 8,231 4,862 Income (loss) before income taxes $ 1,663 $ (3,632 ) $ (10,464 ) $ (11,057 ) The Company’s CODM does not not not two not not |
Note 14 - Acquisitions
Note 14 - Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 14. On January 3, 2022, Our results of operations for the six June 30, 2022 not not not not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures required by generally accepted accounting principles (“GAAP”) are omitted or condensed in these condensed consolidated financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) that are necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods have been made. The interim results reflected in these condensed consolidated financial statements are not 10 December 31, 2021 |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may |
Revenue [Policy Text Block] | Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606 Revenue from contracts with customers 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 EGM Gaming operations $ 50,538 $ 49,432 $ 97,834 $ 89,036 Equipment sales 19,929 11,761 39,539 22,675 Total $ 70,467 $ 61,193 $ 137,373 $ 111,711 Table Products Gaming operations $ 3,499 $ 2,793 $ 6,896 $ 5,520 Equipment sales 15 37 98 66 Total $ 3,514 $ 2,830 $ 6,994 $ 5,586 Interactive (gaming operations) Social gaming revenue $ 515 $ 580 $ 1,030 $ 1,289 Real-money gaming revenue 2,088 2,234 4,044 3,610 Total $ 2,603 $ 2,814 $ 5,074 $ 4,899 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to any undelivered performance obligations is recorded as a contract liability. The balance of our contract liabilities was not June 30, 2022 December 31, 2021 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. A large percentage of receivables are with Native American tribes and the Company has concentrations of credit risk with several tribes. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. Allowance for Expected Credit Losses Management estimates the allowance for expected credit losses balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in the current environmental economic conditions and reasonable and supportable forecast. The allowance for expected credit losses on financial instruments is measured on a collective (pool) basis when similar risk characteristics exist. The financial instruments that do not not For the period ended June 30, 2022 no |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 no June 30, 2022 December 31, 2021 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 1 to 5 Other property and equipment (in years) 3 to 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not |
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The computer software we develop reaches technological feasibility when a working model of the computer software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed computer software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. |
Business Combinations Policy [Policy Text Block] | Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar issues (Level 2 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 574,298 $ 542,752 $ 615,743 $ 613,706 |
Income Tax, Policy [Policy Text Block] | Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of other accumulated comprehensive income (loss) in stockholders’ equity. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In March 2022, No. 2022 02, Financial Instruments - Credit Losses (Topic 326 No. 2022 02 310 40 No. 2022 02 December 15, 2022, not We have not not |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 EGM Gaming operations $ 50,538 $ 49,432 $ 97,834 $ 89,036 Equipment sales 19,929 11,761 39,539 22,675 Total $ 70,467 $ 61,193 $ 137,373 $ 111,711 Table Products Gaming operations $ 3,499 $ 2,793 $ 6,896 $ 5,520 Equipment sales 15 37 98 66 Total $ 3,514 $ 2,830 $ 6,994 $ 5,586 Interactive (gaming operations) Social gaming revenue $ 515 $ 580 $ 1,030 $ 1,289 Real-money gaming revenue 2,088 2,234 4,044 3,610 Total $ 2,603 $ 2,814 $ 5,074 $ 4,899 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Gaming equipment (in years) 1 to 5 Other property and equipment (in years) 3 to 6 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | June 30, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 574,298 $ 542,752 $ 615,743 $ 613,706 |
Note 2 - Property and Equipme_2
Note 2 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2022 December 31, 2021 Gaming equipment $ 212,243 $ 196,748 Other property and equipment 22,429 23,973 Less: Accumulated depreciation (159,246 ) (145,805 ) Property and equipment, net $ 75,426 $ 74,916 |
Note 3 - Goodwill and Intangi_2
Note 3 - Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount EGM Table Products Interactive(1) Total December 31, 2021 $ 277,725 $ 7,821 $ - $ 285,546 Foreign currency adjustments 293 - - 293 Acquisition - 1,230 - 1,230 Balance at June 30, 2022 $ 278,018 $ 9,051 $ - $ 287,069 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | June 30, 2022 December 31, 2021 Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying (years) Value Amortization Value Value Amortization Value Indefinite lived trade names Indefinite $ 12,126 $ - $ 12,126 $ 12,126 $ - $ 12,126 Trade and brand names 5 - 7 14,990 (14,616 ) 374 14,870 (14,495 ) 375 Customer relationships 5 - 12 219,147 (161,415 ) 57,732 218,247 (155,140 ) 63,107 Contract rights under development and placement fees 1 - 7 42,395 (20,697 ) 21,698 42,535 (17,639 ) 24,896 Gaming software and technology platforms 1 - 7 187,402 (137,388 ) 50,014 177,686 (126,182 ) 51,504 Intellectual property 10 - 12 21,845 (12,368 ) 9,477 19,345 (11,309 ) 8,036 Total intangible assets $ 497,905 $ (346,484 ) $ 151,421 $ 484,809 $ (324,765 ) $ 160,044 |
Note 4 - Accrued Liabilities (T
Note 4 - Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | June 30, 2022 December 31, 2021 Salary and payroll tax accrual $ 14,619 $ 16,994 Taxes payable 4,420 4,016 Current portion of operating lease liability 2,222 2,137 License fee obligation 1,000 1,000 Placement fees payable 6,314 6,314 Accrued other 10,635 8,704 Total accrued liabilities $ 39,210 $ 39,165 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | June 30, 2022 December 31, 2021 First Lien Credit Facilities: Term loans, interest at SOFR, subject to a 0.75 4.0 6.2 16.3 $ 557,236 $ - Term loans, interest at LIBOR or base rate plus 3.5 4.5 4.0 - 517,247 Incremental term loans, interest at LIBOR or base rate plus 13.0 14.0 5.6 - 87,958 Finance leases 735 953 Total debt 557,971 606,158 Less: Current portion (6,146 ) (6,877 ) Long-term debt $ 551,825 $ 599,281 |
Note 8 - Basic and Diluted In_2
Note 8 - Basic and Diluted Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, 2022 Numerator: Net income $ 1,542 Net income attributable to participating securities $ 89 Net income attributable to common stock $ 1,453 Denominator: Weighted average of common shares outstanding $ 36,998 Potential dilutive effect of stock options $ - Weighted average of common shares outstanding $ 36,998 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2021 1,244,073 $ 9.14 3.4 $ 193 Granted - $ - - $ - Exercised - $ - - $ - Canceled or forfeited (81,985 ) $ 10.51 - $ - Options outstanding as of June 30, 2022 1,162,088 $ 9.05 2.9 $ - Options exercisable as of June 30, 2022 1,162,088 $ 9.05 2.9 $ - |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Outstanding Weighted Average Grant Date Fair Value (per share) Restricted Stock and Restricted Stock Units Outstanding as of December 31, 2021 1,934,876 $ 8.25 Granted 107,301 $ 7.48 Vested (179,296 ) $ 12.81 Canceled or forfeited (35,641 ) $ 8.99 Restricted Stock and Restricted Stock Units Outstanding as of June 30, 2022 1,827,240 $ 7.74 |
Phantom Share Units (PSUs) [Member] | |
Notes Tables | |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Outstanding Weighted Average Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2021 2,253,400 $ 6.47 Granted 2,669 $ 7.87 Vested - $ - Canceled or forfeited (49,208 ) $ 6.19 Phantom stock outstanding as of June 30, 2022 2,206,861 $ 6.48 |
Note 13 - Operating Segments (T
Note 13 - Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues by segment EGM $ 70,467 $ 61,193 $ 137,373 $ 111,711 Table Products 3,514 2,830 6,994 5,586 Interactive 2,603 2,814 5,074 4,899 Total Revenues 76,584 66,837 149,441 122,196 Adjusted EBITDA by segment EGM 31,564 29,453 61,759 53,856 Table Products 2,021 1,448 3,850 2,859 Interactive 545 1,202 1,287 1,710 Subtotal 34,130 32,103 66,896 58,425 Write-downs and other: Loss on disposal of long-lived assets 323 120 416 191 Impairment of long-lived assets 19 - 19 653 Fair value adjustments to contingent consideration - (56 ) - (56 ) Depreciation and amortization 19,160 18,611 38,029 37,019 Interest expense, net of interest income and other 8,150 11,060 17,406 21,900 Loss on extinguishment and modification of debt - - 8,549 - Other adjustments 301 717 412 679 Other non-cash charges 2,108 2,053 4,298 4,234 Non-cash stock-based compensation 2,406 3,230 8,231 4,862 Income (loss) before income taxes $ 1,663 $ (3,632 ) $ (10,464 ) $ (11,057 ) |
Note 1 - Description of the B_3
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory, Raw Materials, Gross | $ 32,700 | $ 22,100 |
Inventory, Finished Goods, Gross | 4,800 | 4,000 |
Inventory, Work in Process, Gross | $ 0 | $ 0 |
Gaming Operations [Member] | Minimum [Member] | ||
Lessor, Operating Lease, Term of Contract (Year) | 1 year | |
Gaming Operations [Member] | Maximum [Member] | ||
Lessor, Operating Lease, Term of Contract (Year) | 3 years |
Note 1 - Description of the B_4
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total revenues | $ 76,584 | $ 66,837 | $ 149,441 | $ 122,196 |
Gaming Operations [Member] | ||||
Total revenues | 56,640 | 55,039 | 109,804 | 99,455 |
Equipment Sales [Member] | ||||
Total revenues | 19,944 | 11,798 | 39,637 | 22,741 |
EGM [Member] | ||||
Total revenues | 70,467 | 61,193 | 137,373 | 111,711 |
EGM [Member] | Gaming Operations [Member] | ||||
Total revenues | 50,538 | 49,432 | 97,834 | 89,036 |
EGM [Member] | Equipment Sales [Member] | ||||
Total revenues | 19,929 | 11,761 | 39,539 | 22,675 |
Table Products [Member] | ||||
Total revenues | 3,514 | 2,830 | 6,994 | 5,586 |
Table Products [Member] | Gaming Operations [Member] | ||||
Total revenues | 3,499 | 2,793 | 6,896 | 5,520 |
Table Products [Member] | Equipment Sales [Member] | ||||
Total revenues | 15 | 37 | 98 | 66 |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | 2,603 | 2,814 | 5,074 | 4,899 |
Interactive (Gaming Operations) [Member] | Social [Member] | ||||
Total revenues | 515 | 580 | 1,030 | 1,289 |
Interactive (Gaming Operations) [Member] | RMG [Member] | ||||
Total revenues | $ 2,088 | $ 2,234 | $ 4,044 | $ 3,610 |
Note 1 - Description of the B_5
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details) | 6 Months Ended | 18 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Minimum [Member] | ||
Gaming equipment (in years) (Year) | 1 year | |
Maximum [Member] | ||
Gaming equipment (in years) (Year) | 6 years | |
Gaming Equipment [Member] | Minimum [Member] | ||
Gaming equipment (in years) (Year) | 1 year | |
Gaming Equipment [Member] | Maximum [Member] | ||
Gaming equipment (in years) (Year) | 5 years | |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | ||
Gaming equipment (in years) (Year) | 3 years | |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | ||
Gaming equipment (in years) (Year) | 6 years |
Note 1 - Description of the B_6
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Estimated Fair Value of Long-term Debt (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Reported Value Measurement [Member] | ||
Long-term Debt, carrying amount | $ 574,298 | $ 615,743 |
Estimate of Fair Value Measurement [Member] | ||
Long-term Debt, fair value | $ 542,752 | $ 613,706 |
Note 2 - Property and Equipme_3
Note 2 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 18 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | |
Depreciation, Total | $ 9.6 | $ 19.3 | $ 19 | |
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 1 year | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 6 years |
Note 2 - Property and Equipme_4
Note 2 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Less: Accumulated depreciation | $ (159,246) | $ (145,805) |
Property and equipment, net | 75,426 | 74,916 |
Gaming Equipment [Member] | ||
Property and equipment, gross | 212,243 | 196,748 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | $ 22,429 | $ 23,973 |
Note 3 - Goodwill and Intangi_3
Note 3 - Goodwill and Intangibles (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amortization of Intangible Assets | $ 9,600 | $ 9,000 | $ 18,700 | $ 18,000 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |||
Accretion of Contract Rights Under Development Agreements and Customer Agreements | 1,600 | $ 1,600 | $ 3,198 | 3,316 |
RMG Technology Platform [Member] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 700 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 12 years | |||
Interactive (Gaming Operations) [Member] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 8,400 | $ 8,400 |
Note 3 - Goodwill and Intangi_4
Note 3 - Goodwill and Intangibles - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) | ||
Balance | $ 285,546 | |
Foreign currency adjustments | 293 | |
Acquisition | 1,230 | |
Balance | 287,069 | |
EGM [Member] | ||
Balance | 277,725 | |
Foreign currency adjustments | 293 | |
Acquisition | 0 | |
Balance | 278,018 | |
Table Products [Member] | ||
Balance | 7,821 | |
Foreign currency adjustments | 0 | |
Acquisition | 1,230 | |
Balance | 9,051 | |
Interactive (Gaming Operations) [Member] | ||
Balance | 0 | [1] |
Foreign currency adjustments | 0 | [1] |
Acquisition | 0 | [1] |
Balance | $ 0 | [1] |
[1]Accumulated goodwill impairment charges for the Interactive segment as of March 31, 2022 were $8.4 million. |
Note 3 - Goodwill and Intangi_5
Note 3 - Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Indefinite lived trade names | $ 12,126 | $ 12,126 |
Finite lived, accumulated amortization | (346,484) | (324,765) |
Intangible assets, gross | 497,905 | 484,809 |
Intangible assets, net carrying value | $ 151,421 | 160,044 |
Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Trade Names [Member] | ||
Finite lived, gross value | $ 14,990 | 14,870 |
Finite lived, accumulated amortization | (14,616) | (14,495) |
Finite lived, net carrying value | $ 374 | 375 |
Trade Names [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Customer Relationships [Member] | ||
Finite lived, gross value | $ 219,147 | 218,247 |
Finite lived, accumulated amortization | (161,415) | (155,140) |
Finite lived, net carrying value | $ 57,732 | 63,107 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Contractual Rights [Member] | ||
Finite lived, gross value | $ 42,395 | 42,535 |
Finite lived, accumulated amortization | (20,697) | (17,639) |
Finite lived, net carrying value | $ 21,698 | 24,896 |
Contractual Rights [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Contractual Rights [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Computer Software, Intangible Asset [Member] | ||
Finite lived, gross value | $ 187,402 | 177,686 |
Finite lived, accumulated amortization | (137,388) | (126,182) |
Finite lived, net carrying value | $ 50,014 | 51,504 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Intellectual Property [Member] | ||
Finite lived, gross value | $ 21,845 | 19,345 |
Finite lived, accumulated amortization | (12,368) | (11,309) |
Finite lived, net carrying value | $ 9,477 | $ 8,036 |
Intellectual Property [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 10 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years |
Note 4 - Accrued Liabilities -
Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Total accrued liabilities | $ 39,210 | $ 39,165 |
Accrued Liabilities [Member] | ||
Salary and payroll tax accrual | 14,619 | 16,994 |
Taxes payable | 4,420 | 4,016 |
Current portion of operating lease liability | 2,222 | 2,137 |
License fee obligation | 1,000 | 1,000 |
Placement fees payable | 6,314 | 6,314 |
Accrued other | $ 10,635 | $ 8,704 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) $ in Millions | Feb. 15, 2022 USD ($) |
New Term Loan Facility [Member] | Term Loan [Member] | |
Debt Instrument, Face Amount | $ 575 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Debt Instrument, Interest Rate, Stated Percentage | 1% |
Percentage of Prepayment Premium Or Fee | 1% |
Debt Instrument, Covenant, Maximum Leverage Ratio | 6.70 |
Percentage of Outstanding Comments | 35% |
Debt Issuance Costs, Gross | $ 17.6 |
Extinguishment of Debt, Amount | $ 8.5 |
New Term Loan Facility [Member] | Term Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |
Debt Instrument, Floor Rate on Variable Rate | 0.75% |
Debt Instrument, Basis Spread on Variable Rate | 4% |
New Term Loan Facility [Member] | Term Loan [Member] | Prime Rate [Member] | |
Debt Instrument, Floor Rate on Variable Rate | 0% |
New Term Loan Facility [Member] | Term Loan [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
New Term Loan Facility [Member] | Term Loan [Member] | Base Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 3% |
Debt Instrument, Quarterly Payment, Percentage of Original Principle Amount | 0.25% |
New Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
New Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | 40 |
New Revolving Credit Facility [Member] | Letter of Credit [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 7.5 |
Note 5 - Long-term Debt - Sched
Note 5 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Long-term debt | $ 557,971 | $ 606,158 |
Less: Current portion | (6,146) | (6,877) |
Long-term debt | 551,825 | 599,281 |
First Lien Credit Facilities [Member] | Term Loan [Member] | ||
Long-term debt | 557,236 | 0 |
First Lien Credit Facilities [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Long-term debt | 0 | 517,247 |
First Lien Credit Facilities [Member] | Incremental Term Loans [Member] | ||
Long-term debt | 0 | 87,958 |
Equipment Long-term Note Payable and Finance Leases [Member] | ||
Long-term debt | $ 735 | $ 953 |
Note 5 - Long-term Debt - Sch_2
Note 5 - Long-term Debt - Schedule of Long-term Debt (Details) (Parentheticals) - First Lien Credit Facilities [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Term Loan [Member] | ||
Floor rate | 0.75% | |
Spread on variable rate | 6.20% | 4% |
Unamortized discount and costs | $ 16.3 | |
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Spread on variable rate | 3.50% | 4.50% |
Unamortized discount and costs | $ 4 | |
Incremental Term Loans [Member] | ||
Spread on variable rate | 13% | 14% |
Unamortized discount and costs | $ 5.6 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Common Stock, Shares Authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 37,121,715 | 36,943,770 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Stock Repurchase Program, Authorized Amount | $ 50 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 47.2 |
Note 7 - Write-downs and Othe_2
Note 7 - Write-downs and Other Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Impairment of Long-Lived Assets to be Disposed of | $ 19 | $ 0 | $ 19 | $ 653 |
Game Titles [Member] | ||||
Impairment of Intangible Assets, Finite-Lived | $ 800 | |||
Discontinued Operations, Disposed of by Sale [Member] | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 300 | $ 100 | $ 400 |
Note 8 - Basic and Diluted In_3
Note 8 - Basic and Diluted Income (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment, Total (in shares) | 2,259,427 | 0 | ||
Underwater Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,162,088 | |||
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,796,053 | 1,630,927 | 2,292,131 | 1,690,871 |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 428,373 | 38,395 | 240,045 |
Note 8 - Basic and Diluted In_4
Note 8 - Basic and Diluted Income (Loss) Per Share - Schedule of Earnings (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income | $ 1,542 | |||
Net income attributable to participating securities | 89 | |||
Net income attributable to common stock | $ 1,453 | |||
Weighted average of common shares outstanding (in shares) | 36,998 | 36,632 | 37,051 | 36,549 |
Potential dilutive effect of stock options (in shares) | 0 | |||
Weighted average of common shares outstanding (in shares) | 36,998 | 36,632 | 37,051 | 36,549 |
Note 9 - Benefit Plans (Details
Note 9 - Benefit Plans (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Apr. 28, 2022 | May 08, 2020 | Apr. 28, 2014 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 01, 2022 | Apr. 27, 2022 | May 07, 2020 | |
Defined Contribution Plan, Cost | $ 0.4 | $ 0.3 | $ 1 | $ 0.7 | ||||||
The 2014 Long-Term Incentive Plan [Member] | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award, Term (Year) | 10 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,253,735 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 423,268 | 423,268 | ||||||||
The 2018 Omnibus Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 4,607,389 | 1,607,389 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) | 3,000,000 | |||||||||
The 2020 Plan Amendment [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 9,607,389 | 4,607,389 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) | 5,000,000 | |||||||||
The 2020 Plan Amendment [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 9,607,389 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Oct. 31, 2018 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,162,088 | 1,244,073 | 493,104 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0 | |||
Share-Based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20% | |||
Share-Based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Maximum [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 2,800 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 4 months 24 days | |||
Phantom Share Units (PSUs) [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 5,400 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 7 months 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||
Phantom Share Units (PSUs) [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% | |||
Performance Shares [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||
Restricted Stock [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25% |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Options outstanding, number of options (in shares) | 1,244,073 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.14 | |
Options outstanding, weighted average remaining contract term (Year) | 2 years 10 months 24 days | 3 years 4 months 24 days |
Options outstanding, aggregate intrinsic value | $ 0 | $ 193 |
Granted, number of options (in shares) | 0 | |
Granted, weighted average exercise price (in dollars per share) | $ 0 | |
Granted aggregate intrinsic value | $ 0 | |
Exercised, number of options (in shares) | 0 | |
Exercised, weighted average exercise price (in dollars per share) | $ 0 | |
Canceled or forfeited, number of options (in shares) | (81,985) | |
Canceled or forfeited, weighted average exercise price (in dollars per share) | $ 10.51 | |
Options outstanding, number of options (in shares) | 1,162,088 | 1,244,073 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.05 | $ 9.14 |
Options exercisable, number of options (in shares) | 1,162,088 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 9.05 | |
Options exercisable, weighted average remaining contract term (Year) | 2 years 10 months 24 days | |
Options exercisable as of June 30, 2022 | $ 0 |
Note 10 - Stock-based Compens_5
Note 10 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Outstanding, shares (in shares) | shares | 1,934,876 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 8.25 |
Granted, shares (in shares) | shares | 107,301 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 7.48 |
Vested, shares (in shares) | shares | (179,296) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 12.81 |
Canceled or forfeited, shares (in shares) | shares | (35,641) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 8.99 |
Outstanding, shares (in shares) | shares | 1,827,240 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 7.74 |
Note 10 - Stock-based Compens_6
Note 10 - Stock-based Compensation - Phantom Stock Units (Details) - Phantom Share Units (PSUs) [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Outstanding, shares (in shares) | shares | 2,253,400 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 6.47 |
Granted, shares (in shares) | shares | 2,669 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 7.87 |
Vested, shares (in shares) | shares | 0 |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 0 |
Canceled or forfeited, shares (in shares) | shares | (49,208) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 6.19 |
Outstanding, shares (in shares) | shares | 2,206,861 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 6.48 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 7.30% | 6.90% | 5.60% | 5.40% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | |
Cadillac Jack [Member] | ||||
Business Combination, Indemnification Assets, Change in Amount | $ 0.1 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2021 | Sep. 30, 2019 | |
Insurance Claims [Member] | ||
Loss Contingency Accrual, Provision | $ 1.6 | |
Audit Conducted by Alabama Department of Revenue [Member] | ||
Loss Contingency, Damages Sought, Value | $ 3.3 |
Note 13 - Operating Segments (D
Note 13 - Operating Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2022 | |
Number of Reportable Segments | 3 |
Note 13 - Operating Segments -
Note 13 - Operating Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total revenues | $ 76,584 | $ 66,837 | $ 149,441 | $ 122,196 |
Adjusted EBITDA | 34,130 | 32,103 | 66,896 | 58,425 |
Loss on disposition of long-lived assets | 323 | 120 | 416 | 191 |
Impairment of long-lived assets | 19 | 0 | 19 | 653 |
Fair value adjustment of contingent consideration | 0 | (56) | 0 | (56) |
Depreciation and amortization | 19,160 | 18,611 | 38,029 | 37,019 |
Interest expense, net of interest income and other | 8,150 | 11,060 | 17,406 | 21,900 |
Loss on extinguishment and modification of debt | 0 | 0 | 8,549 | 0 |
Other adjustments | 301 | 717 | 412 | 679 |
Other non-cash charges | 2,108 | 2,053 | 4,298 | 4,234 |
Non-cash stock-based compensation | 2,406 | 3,230 | 8,231 | 4,862 |
Income (loss) before income taxes | 1,663 | (3,632) | (10,464) | (11,057) |
Electronic Gaming Machines, EGM [Member] | ||||
Total revenues | 70,467 | 61,193 | 137,373 | 111,711 |
Adjusted EBITDA | 31,564 | 29,453 | 61,759 | 53,856 |
Table Products [Member] | ||||
Total revenues | 3,514 | 2,830 | 6,994 | 5,586 |
Adjusted EBITDA | 2,021 | 1,448 | 3,850 | 2,859 |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | 2,603 | 2,814 | 5,074 | 4,899 |
Adjusted EBITDA | $ 545 | $ 1,202 | $ 1,287 | $ 1,710 |
Note 14 - Acquisitions (Details
Note 14 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Jan. 03, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill, Ending Balance | $ 287,069 | $ 285,546 | |
Table Game-related Intangible Assets Under Lucky Lucky Trade Name [Member] | |||
Business Combination, Consideration Transferred, Total | $ 4,800 | ||
Goodwill, Ending Balance | 1,200 | ||
Finite-Lived Intangible Assets Acquired | $ 3,500 | ||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 9 years 1 month 6 days |